The largest sporting-goods retailer in the U.K. – Sports Direct International Plc made an official statement, saying that it is making a third attempt to get an approval for its founder Mike Ashleys bonus from the companys shareholders. Sports Direct reported that it will ask its investors to support its 2015 Bonus Share Scheme at the companys annual meeting that is to take place in July.
The Chairman of Sports Direct – Mr. Keith Hellawell said in the statement, which was cited by Bloomberg: “The board and the remuneration committee have responded to the feedback received from shareholders to develop a long-term share incentive scheme which not only will continue to motivate the company’s employees, but which also recognizes and rewards the substantial contribution made by Mike Ashley over many years.” Mr. Hellawell also added: “Based on the stretching performance targets established, this scheme has the potential to create a further substantial increase in shareholder value.”
Mr. Ashley, who founded Sports Direct in 1982, currently owns about 62% stake in the company, has yet to receive a salary for his role as deputy chairman. The last attempt of the company to provide him with a bonus was in March this year, but the bonus scheme was withdrawn due to the fact it was not well-accepted by shareholders.
The company was forced to change its plans for a vote on a share bonus scheme that was estimated at 73 million pounds after the investors did not support the plan. A previous plan in 2012 also did not manage to get to a vote.
According to the new bonus plan, about 25 million ordinary shares are to be provided to eligible employees of the company, including executive directors. This is about 4.2% of the issued capital of Sports Direct International Plc.
Sports Direct International Plc was adding 0.65% to trade at 818.25 pence per share by 8:47 GMT, marking a one year change of +58.42%. According to the information published on the Financial Times, the 9 analysts offering 12-month price targets for Sports Direct International Plc have a median target of 1,000.00, with a high estimate of 1,100 and a low estimate of 800.00. The median estimate represents a 23.00% increase from the last price of 813.00.
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